Citadel calls on SEC to strictly regulate tokenized stocks, opposes exemptive treatment

This week, market-making giant Citadel Securities sent a letter to the U.S. SEC's Crypto Assets Working Group, opposing granting exemptive treatment to tokenized equities, saying that doing so could cause liquidity to flow out of traditional markets and cause investors to be confused about asset issuers. Citadel said that tokenized equities should follow the same regulatory rules as traditional securities, and that the SEC should advance relevant policies through roundtables and formal rulemaking, rather than circumventing existing regulations through "innovation exceptions." [The Block]